One of the top questions we hear from businesses evaluating new ERP software is how much does Dynamics AX cost?
Breaking down the cost of Dynamics AX software
The software cost of Dynamics AX itself is pretty simple to explain:
- There's a server component
- There are licenses for named users
There are a few different license types for named users in Dynamics AX. The two main ones are:
- Enterprise users - who can do everything within the software
- Functional users - whose use is restricted to certain areas
Once we understand the number of users your organization needs for the project, we can very easily and very quickly determine what the cost of Dynamics AX licenses will be for your organization. Those costs are upfront, one-time, perpetual costs for the licenses of Dynamics AX.
Dynamics AX implementation costs
The second component of cost in a project is really for the implementation itself. This cost is for the services related to the time and expertise in developing, configuring and coordinating the project. The services cost can vary a lot depending on the scope of the project. We have some clients that might just start off by applying the finance module. We have others that will do finance and supply chain. And still we have others that will want a larger scope of implementing finance, supply chain, and then HR, for example.
With an understanding of the scope of the project that you want for your organization, we can help you estimate what the implementation costs might be. The implementation costs range anywhere from one-and-a-half to three times the upfront software cost. That might seem like a broad statement, but again, once we understand the scope, we can give you a more accurate estimate.
To give you an idea of what the cost might be for an average client (though everyone's needs are different, so there really is no such thing as an average client or a normal prospect) - we're working with one company right now that is a smaller Dynamics AX deployment of 70 users, 30 of which are enterprise users and 40 functional users. The cost for Dynamics AX licenses, one-time upfront, is just under $200,000.
Knowing the software cost itself is the first part of the equation, the next step is gaining a good understanding of the project scope. With these two steps we're able to give prospects a really good estimate of what it's going to cost for the organization to implement Microsoft Dynamics AX.
Scott Boedigheimer refers to himself as a "recovering CPA," and since his career in public accounting, he has served in a variety roles in technology consulting, sales and management. He is currently the Vice President of Sales at Stoneridge Software. With locations in Barnesville, MN and Minneapolis, MN, Stoneridge Software is the premier Dynamics AX and Dynamics NAV partner in the Upper Midwest. If you're beginning the process of evaluating ERP software or looking for an estimate of what the Dynamics AX cost would be for your organization, contact Scott at Stoneridge Software: 612-354-4966 or solutions@stoneridgesoftware.com.
by Stoneridge Software